MANAGING TEMPORARY WORKERS MOBILITYMODE 4 AT WORKCOUNCIL FOR TRADE IN SERVICES THEMATIC SEMINARWEDNESDAY, 10 OCTOBER 2018 - WTO

Jean-Christophe DumontHead of International Migration Divisionjean-christophe.dumont@oecd.org

Small decrease in permanent migration in 2017 but a higher level than in 2007/08

Evolution of permanent migration inflows to OECD countries

Source International Migration Outlook, (OECD, 2018)

All categories of temporary migration are increasing except intra-company transferees

Temporary labour migration flows, 2016

Source: International Migration Outlook (OECD, 2018)

Thousands(2016)

Evolution % (2015-2016)

No countries included

Seasonal workers 685 +30 13

Intra-company transferees 153 -2 11

Posted workers(intra-EU/EFTA) 1537 +8 25

Trainees 140 +7 12

Working holiday makers 477 +1 15

A journey in the brainof a policy maker (from interior/labour ministries) • Who to admit ?

• Who is in charge of the selection ?

• How many migrants workers to let in ?

• For how long?

- Adverse effects on the labour market

- Illegal employmentof foreign workers

Unpacking the policy tool box

Skills assessment and recognition

Selection process and conditions

Numerical limits(national, regional, firm)

Duration of stay / renewability / mobility between employers & sectors

Protecting labour markets from TFW … but with numerous exemptions (ICT, HS, self employed)

Job offer Skill threshold LMT SOL Num LimitSweden Yes No Nominal Yes No

Spain Yes No Yes Yes NoPortugal Yes No Yes No Yes, butHungary Yes No Yes No Yes, butFinland Yes No Yes Yes NoPoland Yes No Yes No NoGreece Yes No Yes No Yes

Italy Yes No Yes No YesFrance Yes Yes Yes Yes No

Germany Yes Yes Yes Yes NoBelgium Yes Yes No No No

Netherlands Yes Yes Yes No NoEstonia Yes No No No Yes

Czech Rep Yes Yes Yes Yes NoAustria Yes Yes Yes Yes No

Denmark Yes No Yes Yes NoUnited Kingdom Yes Yes Yes Yes Yes

Ireland Yes Yes Yes Yes NoAustralia Yes Yes Yes Yes No, but Canada Yes Yes Yes Yes No, but

USA Yes Yes, but Yes No Yes, but

LABOUR MARKET TESTS

Labour Market Tests: duration

Duration of the labour market test for various types of labour migration permits, 2018

0

5

10

15

20

25

30

35

None

Labour Market Tests : who is exempted?Trusted employers

NZL, AUS, DNK, CAN,

UK, NLD

• Does the employer have a good compliance record?

• Is there a high share of foreign workers?

• Have steps been taken to recruit or to trainavailable workers?

• Possible approval for multiple positions, over a period of time

Labour Market Tests : who is exempted ? Shortage Occupation Lists

Country Shortage Occupation List Labout market tests

Australia √ √Austria √ √Belgium √Canada √ √ChileCzech Republic √Denmark √EstoniaFinland √ √France √ √Germany √ √Greece √ √Ireland √ √IsraelItalyJapanKorea √Luxembourg √MexicoNetherlands √ √New Zealand √ √Norway √Poland √Portugal √ √Spain √ √Sweden √Switzerland √Turkey √United Kingdom √ √United States √ √

Shortage lists are important only to the extent they allow admission, so they depend on

• the severity, complexity and cost of the LMT from which they provide an exemption

OR

• the extent to which they remove a general restriction on labour migration

Labour Market Tests : how is it built ?UK : Skilled, Shortage and Sensible

UK shortage indicators (revised in 2017)

EMPLOYER COSTS

Initial permit issuance costs …but these are not used as management tools

0 200 400 600 800 1000 1200

POLKORCZETUR

HUNSLOITA

FRALITISL

ROMNZLSLKESPBLG

SWENZLCANDNKFIN

AUSIRL

CHE

Minimum Maximum

0 1500 3000 4500 6000 7500 9000

FRAUSAAUSISR• Initial permit costs

vary significantly according to the country but also within countries according to the permit category.

• They cover different duration and vary for initial permits and renewals

• They are rarely prohibitive (USD 2014)

Levies and other additional employer costs

Continuous tariffs on employment of foreign workers – widely used in Asian non-OECD economies (Malaysia, Chinese

Tapiei, Singapore)– but less so in OECD (Israel) [formerly in EST]

- Raise the cost of hiring foreign workers to make them less competitive relative to resident workers- Revenue stream for the government, with the possibility to reinvest in training or in programme management- Politically attractive- Allow for targeted intervention (e.g., “dependent” employers)

- Deny worker the wage benefit of the higher employer cost - Employers hate levies and contest them bitterly in politics and media- Difficult to set precisely by sector, occupation, cycle, etc.- Risk that employers extract levies from workers by through illegal means (overtime, wages, hiring fees)- Dependence on the revenue stream

NUMERICAL LIMITS

Numerical limits (caps, quotas…)

• Numerical limits can be set overall, or by sector, occupation, nationality, programme, etc.– Examples by programme: AUT, ITA, ESP, USA etc.– Examples by employer : KSA, ISR, IRL, USA, CAN, TUR

• Simple, blunt instrument and safeguard

• Politically attractive, communicate control

• Difficult to set

• Powerful intervention of interests in setting limits

• Difficult to prioritise within the limits (first-come, sector, salary, etc.)

RECOGNITION OF FOREIGNQUALIFICATIONS

Making the most of migrants’ skills

One in two tertiary educated immigrant (15-64) in the OECD is ever inactive, unemployed or overqualified in the his/her job

Skills assessment, development and recognition should be better

integrate into the migration process

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0.1

0.2

0.3

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0.5

0.6

ISCED 0-1 ISCED 2 ISCED 3-4 ISCED 5 ISCED 6

Natives Host Country EducationForeign Education EU27 Foreign Education non-EU27

0

0.1

0.2

0.3

0.4

0.5

0.6

ISCED 0-1 ISCED 2 ISCED 3-4 ISCED 5 ISCED 6

Natives Host Country Education Foreign Education

Employment premium associated to education by place of training (controlling for age and gender)

Europe United States

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Establish a right to the assessment of foreign qualifications

Make sure that recognition procedures are quick and provide opportunities to assess foreign qualifications prior to arrival

Facilitate information and application through one-stop-shops for the assessment and recognition of foreign qualifications

Strengthen systems for the Recognition of Prior Learning and ensure effective access for immigrants

Link partial recognition to bridging courses

Ensure that regulatory bodies treat immigrants fairly

Engage employers and other relevant non-governmental stakeholders

Establish partnerships and networks for the transnational exchange of expertise and good practice in the area of recognition

Expand bilateral and multilateral agreements on the assessment and recognition of foreign qualifications

Make sure that costs do not represent a barrier

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Key lessons on the assessment and recognition of foreign qualifications from OECD countries

For further information:www.oecd.org/migration

jean-christophe.dumont@oecd.org

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Thank you for your attention